Base Metals Report;5 November 2015

 commodityM Market Commentary
The markets received a fillip overnight as the Chinese President emphasised that the GDP target for the next five years “should be” at least 6.5 %. Added to this China released better than expected data from the Caixin Services PMI, which rose in October to 52.0 – up from 50.5 in September. The resulting positivity inspired copper’s move up to a high of $5220 early afternoon, but this proved to be a false dawn under technical selling, the stronger dollar (again) exerting negativity and the whole complex eased back. Underlying dollar strength was bolstered by data on private sector job growth, the narrowing US trade deficit and increasingly loud calls that the Fed is likely to increase interest rates at the December meeting, following comments from Ms Yellen Gold was the main victim falling sharply again to its current $1,112. Later afternoon trading has shown further copper weakness, but tin in particular, and the other metals are more resolute albeit under low volumes.
Regards All.
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